Thank you for the question. I’d like to clarify first that a “Verified” label does not represent any endorsement or guarantee of a token’s safety by SwaptoX.
On the DApp frontend, this label is presented as a visual indicator to help users understand a token’s relative risk profile based on on-chain verifiable data, liquidity conditions, and observable market behavior, rather than a security conclusion.
We plan to provide four types of risk indicators to help users quickly assess and make informed decisions:
Green Label (Relatively low-risk, commonly used tokens)
The green label is intended for tokens with higher transparency and broader usage, for example:
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Verified contract source code with no obvious malicious permissions
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Stable on-chain liquidity and trading activity
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Long-term integration across multiple DEXs or applications
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(As a reference signal) widely used across different ecosystems
This label only indicates relatively lower risk from a transparency and market-behavior perspective and does not constitute a safety guarantee.
Yellow Label (Medium risk – caution advised)
A yellow label is applied when the system detects one or more of the following:
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Buy/sell price gap exceeding 1%
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Abnormally high slippage compared to similar assets
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Detected buy or sell taxes (static or dynamic)
These signals are derived from our existing quote engine and transaction simulation modules.
Yellow labels are always accompanied by a warning modal highlighting potential pricing or liquidity risks.
Red Label (High risk – strong warning)
A red warning is shown, along with repeated confirmation prompts, when high-risk signals are detected, such as:
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Buy/sell price gap exceeding 20%
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Unverified or opaque contract source code
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Transaction restrictions (e.g. inability to sell, trading locks)
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Clearly suspicious or high-risk contract functions
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Highly centralized contract control with critical permissions not renounced
Price behavior and sellability are detected via on-chain simulation, while other contract-level signals are obtained through internal rules or third-party security data sources.
Grey Label (Insufficient information)
This indicates that the token does not meet the criteria for a green label, but no explicit high-risk signals have been detected.
It represents limited information rather than a safety assessment.
Price Gap Warnings and Possible Outcomes
Yellow and red labels are always accompanied by clear warning modals.
If a user chooses to proceed despite the warning, possible outcomes may include:
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Receiving significantly fewer tokens than expected due to high slippage
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Difficulty or inability to sell the token at a reasonable price
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Transaction failures caused by insufficient liquidity, resulting in gas loss
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Asset loss caused by hidden taxes or dynamic token mechanisms
In summary:
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A green label ≠ a safety guarantee
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A red label ≠ a token is necessarily fraudulent
These indicators are designed to increase risk visibility, support informed user decision-making, and improve overall safety and user experience.